Toyota to cut North American output by 29 percent through October

A file photo shows employees walking at Toyota Motor Corp’s new plant in Apaseo El Grande in Mexico’s central state of Guanajuato, Mexico. REUTERS

Toyota Motor Corp plans to slash production in North America by nearly a third through October due to the coronavirus crisis and expects it will take some time for output to return to normal, a person familiar with the matter said.

Toyota will build about 800,000 vehicles, including its RAV4 SUV crossovers and Camry sedans, at plants in the United States, Canada and Mexico from April through to the end of October, the person told Reuters.

That’s down 29 percent from the Japanese automaker’s output in the same seven months of 2019 and 32 percent lower than its forecast in January for production during the period.

The source declined to be identified because the information is not public.

A Toyota spokeswoman declined to comment on production plans.

The drop in Toyota’s production highlights the pain for carmakers around the world due to the fallout from the virus. Besides weak demand, problems with procurement and social distancing measures at plants are also expected to hit output.

Analysts expect a slow and patchy recovery from the pandemic to curtail spending while social distancing may also curb the need for some to commute, dampening the need for new cars.

Toyota is gradually resuming output at its seven North American sites from Monday.

Its production in many countries ground to a halt in mid-March as governments locked down economies, forcing factories to close as workers were unable to commute.

The source said Toyota plans to keep May production at less than 10 percent of last year’s levels – after zero output in April – before ramping up to normal levels in July.

By September, monthly vehicle production will be outpacing levels the previous year, as Toyota catches up with lost output.

North America is a major production centre for Toyota with the United States alone accounting for about 14 percent of its global output in 2019, making it the carmaker’s third-largest factory hub after Japan and China.

Toyota announces its full-year financial results on Tuesday. (REUTERS)

Related post

2022 KTM Adventure 390 launched in India

KTM has officially revealed the updates on the Adventure 390. The all-new 2022 Adventure 390 comes with major upgrades to the bodywork and features, such as the addition of two-mode traction control: street mode and off-road mode.

Read More

TVS Ntorq 125 XT launched in India

TVS Motor Company has launched its new scooter–the Ntorq XT–in India. The newly launched scooter is the company’s most expensive model in its Ntorq-125 series. The XT is based on Ntorq’s disc brake variant, but comes loaded with new features and technology. The scooter has been launched in India at a starting price of INR 1.03 lakh.

Read More

Ioniq 5, Kia EV6, and Taigun nominated for the 2022 World Car Awards

The Hyundai Ioniq 5, Kia EV6, and Volkswagen Taigun have all made it to the 2022 World Car Finals in their respective categories. The Ioniq 5 has been nominated in three different categories, the EV6 in two, and the Taigun in one.

Read More

GWM Haval H6 earns five-star ANCAP safety rating

Great Wall Motor’s (GWM) HAVAL H6 has received high scores in the rigorous Australasian New Car Assessment Program (ANCAP) crash test,

Read More

Komaki debuts in Nepal with two electric scooters–the Venice and the SE

Komaki Electric Vehicles, the Delhi-based EV maker, has debuted in Nepal with the launch of two electric scooter models: the Venice and the SE. Unity Trading Concern Pvt. Ltd has taken the role of distributing the Komaki Electric vehicles in the country. Design The Venice, a retro-styled scooter, comes with a circular LED headlight, LED […]

Read More

Shadow Top Brand Shadow